TRIADR. Accounts Receivable Strategy Guide

Transcription

1 TRIADR H a r d l i n e s & l u m b e r Accounts Receivable Strategy Guide

2 Foreword This manual contains reference information about Triad s hardgoods retail software products. The software described in this manual, as well as the manual itself, are furnished under the terms and conditions of a license agreement. The software consists of software options which are separately licensed. It is against the law to copy the software on any medium, or to enable any software options, except as specifically permitted under the license agreement. In addition, no part of this manual may be copied or transmitted in any form or by any means without the prior written permission of Triad. From time to time, Triad makes changes to its software products. Therefore, information in this manual is subject to change and the illustrations and screens which appear in the manual may differ somewhat from the version of the software provided to you. Created by Learning Products Development Copyright 1994, 1995 by Triad Systems Corporation. All rights reserved. Printed in the United States of America. Hardlines and Lumber Division 3055 Triad Drive Livermore, CA Publication No Revision No. 4966

3 Contents Using This Strategy Guide Overview The Purpose of This Strategy Guide Who Should Use This Strategy Guide How This Strategy Guide is Organized Conventions Used in This Strategy Guide Using the Training Mode Entering the Training Mode Exiting the Training Mode Where to Get Help Setting Up Accounts Receivable Overview Introduction Adding Tax Codes Function MTX Adding Terms Codes Function MTM Adding Salespeople Function MSL Recording Sales Who Receives Credit For the Sale? Adding Accounts Receivable Constants Function MCT Screen Screen Screen What You Should Do Now Adding Customers Overview Introduction Gathering Source Documents Adding Customers Function MCR Lumber/Contractor Strategies Job Accounts Printing a Customer List Report RFR Changing Customer Information Function MCR What You Should Do Now Adding Account Balances Overview Introduction Gathering Source Documents i

4 Contents Adding Beginning Account Balances Function MOI Checking Your Work Report RDJ Finalizing Beginning Balances Report RDJ Printing Aged Balances Report RAG What You Should Do Now Posting Daily Transactions Overview Introduction Entering Invoices Function MOI Entering Credits Function MOI Entering Adjustments Function MOI Entering Payments for Balance Forward Accounts Function ROA Entering Payments for Open Item Accounts Function ROA Checking Your Work Report RDJ Finalizing the Daily Transactions Report RDJ What You Should Do Now Maintaining Accounts Overview Introduction Changing a Customer s Number Function CCN Deleting Accounts Function MCR What You Should Do Now Maintaining Transactions Overview Introduction Displaying Transactions Function DCA Printing a List of Transactions Report RFR Deleting Transactions Function MOI Writing Off Bad Debts Function ROA Paying a Credit Balance Functions MOI and ROA ii

5 Contents Writing Off a Credit Balance Functions MOI and ROA What You Should Do Now Using Flex Reports Overview Introduction Understanding Flex Reports Creating Flex Reports Function MFR Printing a Sample Format Report RFD Changing a Flex Format Function MFR Printing Flex Reports Report RFR Copying Flex Reports Function MFR Deleting Flex Formats Function MFR What You Should Do Now Statement Close Calculating Finance Charges Report RAG Reviewing Finance Charges Report RDJ Finalizing Finance Charges Report RDJ Printing Statements Report RSM Aligning Statements Purging Transaction Detail Report RAG Printing Mailing Labels Report RML What You Should Do Now Month-End and Year-End Close Overview Introduction Reviewing Month-End Queues Function MEQ Reviewing Year-End Queues Function MEQ What You Should Do Now Overview Introduction iii

6 1 Using This Strategy Guide Overview This chapter presents the following information. The purpose of this strategy guide page 1-2 Who should use this strategy guide page 1-2 How this strategy guide is organized page 1-2 Conventions used in this strategy guide page 1-3 Using the Training Mode page 1-3 Where to get help page 1-6 Overview 1-1

7 1 The Purpose of This Strategy Guide The purpose of the guide is to provide information about the options you have when setting up accounts receivable. This is not a reference manual, but a guide, offering you strategies for customizing your accounts receivable. When you have completed this strategy guide, you will have the basic information you need to use your Triad accounts receivable application. The guide is purposely short on detail to get you up and running faster. Who Should Use This Strategy Guide Anyone who has decision-making authority, and is involved in the areas of setting up and maintaining accounts receivable, should complete this strategy guide. How This Strategy Guide is Organized This strategy guide includes the following chapters: 1 Using This Strategy Guide describes the guide, its structure, and the conventions that help you find the information you need. 2 Setting Up Accounts Receivable provides strategies on how to set up accounts receivable constants and supporting information before loading accounts. 3 Adding Customers provides strategies on how to add and change customer accounts, and print a customer list. 4 Adding Account Balances provides strategies on how to add beginning balances, make changes, print aged balances, and reset history information 5 Posting Daily Transactions provides strategies on how to enter and finalize invoices, credits, adjustments, and payments prior to implementing point-of-sale. 6 Maintaining Accounts provides strategies on how to change an account s balance method, change a customer number, and delete accounts. 7 Maintaining Transactions provides strategies on how to display, change, and delete, and how to write off bad debts. 8 Using Flex Reports provides strategies on how to create, change, copy, and print flex reports. 1-2 The Purpose of This Strategy Guide

8 9 Statement Close provides strategies on how to calculate finance charges, delete finance charges, finalize finance charges, align statements, print statements, and print mailing labels. 10 Month-End and Year-End Close provides strategies on the month-end and year-end reports. 1 Conventions Used in This Strategy Guide The following style conventions will help you use the strategy guide and the accounts receivable application more effectively. Convention Entries Keys Messages Exercises Footer Description Actual entries you type at the terminal keyboard appear in boldface type. For example, type MOI. The keys you press to perform a function at the terminal appear in boldface type inside angle brackets. For example, <Enter>. The messages and prompts you receive from the Triad system are presented in special type. For example: THIS RECORD HAS BEEN ADDED. You will practice accounts receivable procedures using the Training Mode. Each exercise begins with this symbol:. At the bottom of every page is a footer. Use this as a guide when looking up information. Look at the bottom of this page to see an example of a footer. Using the Training Mode You do not need to have access to your Triad system to complete the strategy guide. However, it can make the concepts easier to understand. If you will be looking at the screens while you complete the strategy guide, make sure you are in the Training Mode. It is important that you work in the Training Mode. If you are not in the Training Mode, you risk changing or losing permanent information that may be set up in the Live Mode. Live Mode data is the real information on your Triad system, such as customer names, customer balances, inventory numbers, sales histories, and purchase orders. Conventions Used in This Strategy Guide 1-3

9 1 Entering the Training Mode Before you enter the Training Mode for the first time, do the following in the Live Mode: 1. In Function MUR, add a user record. 2. In Function MSE, add bit #125 to the user record. Only user records with bit #125 can access the Training Mode. To enter the Training Mode, do the following: 1. At the login prompt, type TRAIN. 2. Press <Enter>. 3. Enter your name and password on the Signon Screen. A screen will display asking you if you want to initialize the training files. You have two options: 1. Type YES to initialize. 2. Press <Enter> to ignore. Type YES if you want to initialize the Training Mode. Initializing will erase any work that you may have done in the Training Mode. It will refresh the information in the Training Mode back to the original data needed to complete the workbook. For example, you would type YES if you have completed the workbook and now one of your co-workers is about to start the workbook exercises. Press <Enter> if you do not want to initialize the Training Mode. Ignore initialization if you do not want to erase any of the work you may have done in the Training Mode. For example, you would ignore initialization if you were in the middle of a chapter and had to exit the Training Mode to go to the Live Mode. When you enter the Training Mode to complete the chapter, you do not want to erase any work you have done so far, so you would ignore initialization. 1-4 Using the Training Mode

10 Then you will see a screen that looks like this: 1 You will see this banner at the top of the screen: APPLICATION TRAINING MODE If you do not see that banner, follow the preceding steps for entering the Training Mode. Exiting the Training Mode To exit the Training Mode and return to the Live Mode, do the following: 1. At the Main Menu, type Quit. 2. Press <Enter>. 3. At the login prompt, type M. 4. Press <Enter>. Using the Training Mode 1-5

11 1 Where to Get Help Use the following chart to help you turn to the right source when you have questions. For questions about Accounts Receivable Troubleshooting Hardware Installation and training Do the following Check the Accounts Receivable Manual, Functions Manual, or Reports Manual. Call Hardgoods Central Support at TRIAD. Call your Field Engineer at TRIAD. Call your Marketing Representative at TRIAD. 1-6 Where to Get Help

12 Setting Up Accounts Receivable 2 Overview You will learn about the following procedures in this chapter. Adding tax codes page 2-2 Adding terms codes page 2-3 Adding salespeople page 2-6 Adding accounts receivable constants page 2-8 What you should do now page 2-15 Overview 2-1

13 Introduction 2 This chapter presents information about the setup procedures that you must complete before you can start adding customers into your Triad system. Adding Tax Codes Function MTX Use Function MTX to enter and maintain your tax records. You must fill in the following fields: Tax Code Tax Rate Location The system will collect the tax information and update the PTD and YTD information at the bottom of the screen. This is the Tax Code Maintenance (MTX) Screen. Before you add your tax codes, ask yourself the questions that follow, then look for your answer. Based on your answers, add your tax codes. 2-2 Introduction

14 Do you report your non-taxable sales as one figure, or do you break them out into separate categories (for example, agriculture, church and state, resale, exempt)? If your answer is One figure Separate You don t know Then You only need to add one tax code. You need to add a tax code for each category. Look at previous tax reports or ask your accountant. 2 Make your tax codes easy to remember. For example, use EX for exempt sales, RE for resale, and so on.? If you use a tax table, you must enter a tax table code in the Tax Table field. If you use a ceiling tax table, enter a C. If you use a repeating tax table, enter an R. Refer to your Accounts Receivable Manual if you need more information about ceiling and repeating tax tables. If you have questions about Function MTX, refer to your Functions Manual and Accounts Receivable Manual. Adding Terms Codes Function MTM Use Function MTM to enter and maintain your terms codes. The system uses the terms codes to determine discount amounts, due dates, and discounts expirations. Triad has added some common terms codes for you. To view them, press <Next> in Function MTM. To print a list of them, run Report RTM. If you have other discount structures or closing dates, add them in Function MTM. Adding Terms Codes Function MTM 2-3

15 This is the Terms File Maintenance (MTM) Screen. 2 Before you add your terms codes, ask yourself the questions that follow, then look for your answers. Based on your answers, add your terms codes. Do you offer a prompt payment discount to your customers? If your answer is No Yes Then The only fields you must enter are the Due Date (or Due Days) and Closing Date. Enter the first line of the Variable Monthly Sales Discounts section (From and To monthly sales amounts and Discount Percent), Due Date (or Due Days), and Closing Date. At Point-of-Sale, the system will calculate the terms discount on every invoice, and print it on the statement. 2-4 Adding Terms Codes Function MTM

16 Do you offer sales discounts based on purchases? If your answer is No Yes Then Do not enter anything in the Variable Monthly Sales Discounts section, unless you offer prompt payment discounts. (See the previous question.) Fill in the Variable Monthly Sales Discounts section. At Point-of-Sale, the system will calculate the terms discount on every invoice, and print it on the statement. A sample screen with variable monthly sales discounts follows. 2 If you have questions about Function MTM, refer to your Functions Manual and Accounts Receivable Manual. Adding Terms Codes Function MTM 2-5

17 Adding Salespeople Function MSL 2 Use Function MSL to add and maintain your salespeople. The system uses the codes to keep track of sales and gross profit for each salesperson. This is optional, and if you do not set it up now, you can always set it up later.? Do not complete this section if you do not have the Advanced Accounts Receivable software package. Do the following to determine if you have the Advanced Accounts Receivable software package. 1. At any menu, type MSL. 2. Press <Enter>. If the Salesperson File Maintenance (MSL) Screen displays, then you have the Advanced Accounts Receivable software package. Proceed with this section. If the message FUNCTION NOT FOUND displays, then you do not have the Advanced Accounts Receivable software package. Do not complete this section. Proceed to the section, Displaying Accounts Receivable Constants. This is the Salesperson File Maintenance (MSL) Screen. 2-6 Adding Salespeople Function MSL

18 Recording Sales You can use your Triad system to record sales in the following ways: Credit the salesperson who is assigned to the customer account (regardless of which POS clerk rings up the sale). Credit a POS clerk with the sales he or she rings up. If you want to credit all the sales for a customer account to a particular salesperson number, do the following: 1. In Function MSL, set up the salesperson record. 2. In the Salesperson field in Function MCR, enter the salesperson number from Function MSL. 2 If you want to credit all the sales that a POS clerk rings up to his or her POS clerk s salesperson record, do the following: 1. In Function MSL, set up a salesperson record for the POS clerk. 2. In the Default Salesperson field in Function MUR, enter the salesperson number from Function MSL. Who Receives Credit For the Sale? When a clerk rings up a sale at POS, your Triad system does the following to determine which salesperson number receives credit for the sale. 1. Check Function MCR. If the Salesperson field is filled in, credit that salesperson number. If the Salesperson field is blank in Function MCR, go to step Check the POS clerk s user record in Function MUR. If the Default Salesperson field is filled in, credit that salesperson number. If the Default Salesperson field is blank, go to step Check Function MCT. If the Salesperson field is filled in, credit that salesperson number. If the Salesperson field is blank, then do not credit any salesperson. If you have questions about Functions MSL or MUR, refer to your Functions Manual and Accounts Receivable Manual. Adding Salespeople Function MSL 2-7

19 Adding Accounts Receivable Constants Function MCT 2 Use Function MCT to enter and maintain store-wide accounts receivable constants. These constants define how your Accounts Receivable system works. The system uses the information in the Account Defaults section to fill in certain fields in other screens, such as the Customer/Job File Maintenance (MCR) Screen. This saves time when you add customers. You can change the defaults on a customer-by-customer basis. Screen 1 This is the first A/R Control File Maintenance (MCT) Screen. Before you add your A/R constants for the first screen, ask yourself the questions that follow, then look for your answers. Based on your answers, add your A/R constants. Do the majority of your customers pay by invoice or by statement? If your answer is Invoice Statement Then At Bal Method, type O. This stands for open item, which means you apply payments and credit memos to a specific invoice. At Bal Method, type B. This stands for balance forward, which means you apply payments and credit memos to the oldest balance (not specific invoices). 2-8 Adding Accounts Receivable Constants Function MCT

20 When you add customers, the system will use your answer as the default balance method. You can change this on a customer-bycustomer basis. Which tax code applies to the majority of your customers? At Tax Code, enter the tax code from Function MTX (Tax Code Maintenance) that applies to the majority of your customers. This is usually your regular state sales tax code. 2 When you add customers, the system will use your answer as the default tax code. You can change this on a customer-by-customer basis. Which terms code applies to the majority of your customers? At Terms, enter the terms code from Function MTM (Terms File Maintenance) that applies to the majority of your customers. When you add customers, the system will use your answer as the default terms code. You can change this on a customer-by-customer basis. Do you have the same credit limit for all your customers? If your answer is Yes No Then At Credit Limit, enter the credit limit amount. When you add customers, the system will use your answer as the default credit limit. You can change this on a customer-by-customer basis. You should still enter the most common credit limit. (Otherwise, the default is zero.) You can change the credit limit on a customer-by-customer basis. Adding Accounts Receivable Constants Function MCT 2-9

21 Do you assess finance charges? 2 If your answer is Yes No Then At Level 1%, enter the monthly finance charge rate. For example, 1.5. Leave Level 1% blank.? Check with your accountant to make sure you answer this correctly. Do you have two finance charge rates? If your answer is Yes No Then At Level 1%, enter the monthly finance charge rate (for example, 1.5). At Lvl 1 Cutoff, enter the level 1 cutoff (for example, 1000). At Level 2%, enter the finance charge for balances over the cutoff level (for example, 1.0). Leave Lvl 1 Cutoff and Level 2% blank. If you assess finance charges, enter the monthly finance charge rate at Level 1%.? Check with your accountant to make sure you answer this correctly. Is there a dollar amount owed under which you do not assess a finance charge? If your answer is Yes No Then At No Chg Amt, enter the amount. For example, if you enter 2.00, the system will not assess finance charges to customers who owe less than $2.00. Leave No Chg Amt blank. The system will assess finance charges on any amount owed to you.? Check with your accountant to make sure you answer this correctly Adding Accounts Receivable Constants Function MCT

22 What is your minimum finance charge amount? At Min Amt, enter the minimum finance charge amount. If you leave Min Amt blank, the system will calculate finance charges as low as $.01. Customers typically use $.50 or $1.00.? Check with your accountant to make sure you answer this correctly. Do you want to assess finance charges on past due finance charges? 2 If your answer is Then Yes At Compound FC, type Y. No At Compound FC, type N.? Check with your accountant to make sure you answer this correctly. When you receive a payment, do you want to pay off the finance charge first, or the balance first? If your answer is Finance charge Balance Then At Apply To FC, type F. The system will apply payments to the finance charge first. Then it will apply the remaining payment amount to the balance. For example, a customer s balance is $100, and you charge a $5 finance charge. The customer sends you a check for $100. The system pays the $5 first, and then pays $95 of the balance. At Apply To FC, type L. The system will apply payments to the balance first. Then it will apply the remaining payment amount to the finance charge. For example, a customer s balance is $100, and you charge a $5 finance charge. The customer sends you a check for $100. The system pays the balance ($100), and does not pay the finance charge. Adding Accounts Receivable Constants Function MCT 2-11

23 ? Check with your accountant to make sure you answer this correctly. 2 Do you want the words Finance Charge or Service Charge to print on statements? If your answer is Then Finance charge At Serv Chrg, type N. Service charge At Serv Chrg, type Y.? Check with your accountant to make sure you answer this correctly. Do you have Triad s General Ledger software package? If your answer is Yes No Then You can determine whether the system passes off the net change to accounts from Report RDJ (Daily Journal Report) to your General Ledger every day. The system only passes off the sales amounts. If you want the system to pass off the sales amounts, type Y at Automated Pass-Off To General Ledger? Then fill in the account number fields with your account numbers. Do not fill in the fields in the General Ledger Accounts section. How many months of transaction detail should you keep? For balance forward accounts, most people keep two months. This means the system keeps details for transactions up to 60 days past due. The system purges the detail for transactions over 60 days past due and compresses it into a balance forward document. For open item accounts, most people keep zero months. This means if the invoice and payment have appeared on a statement, the system will purge them when you run a purge report (Report RAG, Option P) Adding Accounts Receivable Constants Function MCT

24 Do you want the system to print your store name and address on statements? If your answer is Yes No Then This means you purchased blank statements. At Print Store Name?, type Y. This means you have preprinted statements. At Print Store Name?, type N. 2 Do you want transactions that were paid for with cash to print on the statements? If your answer is Yes No Then At Print Prepaids?, type Y. All cash sales print on statements. At Print Prepaids?, type N. Only charges, credits, payments, and finance charges print on statements. Most people do not want prepaids to print on statements, because they confuse customers. Do you want the due date to print on statements? If your answer is Then Yes At Print Due Date?, type Y. No At Print Due Date?, type N. If your due dates vary per invoice (for example, your terms are based on days, not date) or if your terms description is different from the actual due date, do not print the due date on statements. Adding Accounts Receivable Constants Function MCT 2-13

25 Do you want the system to apply credits to the oldest balance, or do you want it to apply credits to the current balance? 2 If your answer is Oldest balance Current balance Then At Apply Credit?, type B. The system will apply credits to the oldest balance first. At Apply Credit?, type D. The system will use the due date of the credit and apply it to the current month s balance. If you apply the credit to an invoice, the system uses the due date of the invoice. Screen 2 Use the second screen of Function MCT to specify the dunning messages that print on statements. Below is the second A/R Control File Maintenance (MCT) Screen. Customers receive the message that corresponds to their oldest balance. For example, if a customer has a balance in the aging bucket, then the dunning message for the aging bucket prints above the aging bucket on the statement. Typically, the dunning messages start out mild and get stronger as the balances get older. Do not enter a dunning message that is not true. For example, do not enter, Your account has been turned over to a collection agency if you have not done this. Make sure you carefully word the dunning messages Adding Accounts Receivable Constants Function MCT

26 Screen 3 Use the third screen of Function MCT to change the aging bucket headings that print on statements. Below is the third A/R Control File Maintenance (MCT) Screen. 2 If you do not change the headings, the headings on the left side of the screen (for example, Current and 1-30) print on statements. Here are some sample strategies for the aging bucket headings. Use the names of the months to show when customers made purchases. For example, Current = March, 1-30 = February, and so on. If you use this strategy, make sure you change the headings each month before you run statements. Do not use Current as a heading. For example, Current = 1-30, 1-30 = 31-60, and so on. If you have questions about Function MCT, refer to your Functions Manual and Accounts Receivable Manual. What You Should Do Now Now that you have read this chapter, you are ready to complete the setup procedures described in this chapter. Make sure you and the person responsible for setting up accounts receivable on your system complete Chapter 2 (Setting Up Accounts Receivable) of the Accounts Receivable Workbook. What You Should Do Now 2-15

27 Adding Customers Overview You will learn about the following procedures in this chapter. 3 Gathering source documents page 3-2 Adding customers page 3-3 Printing a customer list page 3-8 Changing customer information page 3-9 What you should do now page 3-9 Overview 3-1

28 Introduction This chapter presents information to help you add customers. The customers you add can be grouped into the following categories: Balance Forward This customer makes payments to the account balance, not to specific invoices. Open Item This customer pays specific invoices. 3 Job This is a sub-account and is associated with a particular customer. Revolving Charge This customer makes payments to the account balance. The amount due each period is based on a certain percentage or dollar amount, plus any amount by which the running balance exceeds the credit limit. Cash This customer pays cash for all purchases, and cannot charge to a store account. Gathering Source Documents The first step to adding customers is to gather your source documents. The source documents provide the information you need to add your customers and their balances into your Triad system. Source documents may provide the following information: customer number customer name address credit limit tax code Examples of source documents include: ledger cards most recent statements 3-2 Introduction

29 Adding Customers Function MCR Use Function MCR (Customer/Job File Maintenance) to add and maintain your customers. The system uses the information in Accounts Receivable (for example, to print statements) and Point-of-Sale (for example, to charge sales to the account). This is the Customer/Job File Maintenance (MCR) Screen. 3 Before you add your customers, ask yourself the questions that follow, then look for your answer. Based on your answers, add your customers. Do you have a numbering scheme for customer numbers? If your answer is Yes Yes, you use the phone number Then Use your current numbering scheme. You can use the phone number. However, the customer number field is six digits long, so you must change the length of the customer number. Most people use the last six digits of the phone number for the customer number. Since phone numbers change often, you can use Function CCN (Change Customer Number) to quickly change the customer number. Adding Customers Function MCR 3-3

30 If your answer is You don t have one Then Start your customer numbers at 1000, and work your way up. Leave ten numbers between numbers, so you have room to add more accounts later. For example, if you start your customer numbers at 1000, make the next number 1010, and so on. 3? You must add at least one cash customer. The system uses this customer to sell to cash customers at Point-of-Sale. Cash customer numbers must start with an asterisk (*). This tells the system that the account is a cash customer account. Most people use *5 for their cash account. Do you have a scheme for sort names? If your answer is Yes No Then Use your sort name scheme. For businesses, use the first five letters of the name. For example, the sort name for Jones Construction is JONES. For individuals, use the first three letters of the last name, and the first two letter of the first name. For example, the sort name for John Smith is SMIJO. This strategy ensures that you can easily find a customer whose last name is the same as another customer s last name. You can display customers by their sort name, so you do not need to know their customer numbers. 3-4 Adding Customers Function MCR